fare regulation

Integrated modal fares, which allow riders to access multiple forms of transit (such as trains or buses) using a single ticket or card, is an important poverty alleviation tool. This innovation is especially critical to low-income transit users that might be unable to afford the sum of multiple fares on their way to jobs, schools, health clinics or other facilities.

A wide range of local governments around the world have introduced integrated modal fares as a way to reduce the burden on low-income users. But the design of these systems requires a very thorough analysis of the urban transport modes being integrated. Bad design may foster inefficiency and lead to huge subsidies that the government, and ultimately the taxpayer, must pay for.

Here are some tips on how to prepare for the design and implementation of integrated fare schemes:

Mr. Julio Lopes, Secretary of Transport of the State of Rio de Janeiro, recently visited the World Bank to present what the city is doing to improve the quality of public transport. It is a fascinating example of how cities can improve urban transport, with a clear target of benefiting the poor and reducing a city’s carbon footprint.